Stroud & Swindon Building Society is launching the Escalator Bond, which guarantees savers a fixed r...
Stroud & Swindon Building Society is launching the Escalator Bond, which guarantees savers a fixed rate rising to 7% gross in the third year.
Launching on 17 April, the bond pays a guaranteed fixed rate of 5% gross in the first year, rising to 5.5% in the second and 7% in the third. The average rate works out as 5.83% gross and the bond will be available from Stroud & Swindon's branch network or via its direct channel.
David Greenleaf, marketing manager at Stroud & Swindon, said: 'The bond will be open to investors as long as funds are available and we are looking to attract about £80m.'
The minimum investment is £2,000 and the bond guarantees a return of the investment upon maturity on 3 May 2005. There is a monthly income option subject to a minimum investment of £5,000. Withdrawals are permitted but will incur a loss of 90 days' interest on the sum withdrawn.
The building society has also relaunched its Premium Saver Account, which pays rates of 4% for investments over£5,000, 4.45% for investments over £25,000 and 4.55% for investments of £50,000 plus.
Contact: 08457 252423 or www.ssbsonline.co.uk
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